IJRTBT INVESTIGATING THE ANTECEDENTS OF COFFEE SHOP

CUSTOMERS' BEHAVIORAL INTENTIONS IN KUALA LUMPUR

Suad Sheikh Mohamud1, Gamal S. A. Khalifa2*, Abuelhassan E. Abuelhassan2,
Sivakumar Kaliyamoorthy2
1
Faculty of Business and Accountancy, Lincoln University College, Malaysia
2
Faculty of Hospitality and Tourism, Lincoln University College, Malaysia
*Corresponding Author's Email: gamal@lincoln.edu.my

ABSTRACT

Coffee accounts are one of the most essential elements in this modern life and has taken the second place
commodity after oil. Coffee shops (both locals and non-locals) are found almost everywhere in Kuala Lumpur.
However, the foreign coffee is winning the market over the local coffee shops. This research is done with the
purpose of carefully investigating the antecedents of coffee shop customers' behavioral intentions in Kuala
Lumpur. In addition, factors allow modern coffee shops to attract their customer more than the traditional
coffee outlets are also examined. The result of this study is extremely essential to coffee shop operators and
staffs, especially for the local traditional coffee shops. Traditional coffee shops can enhance their services by
understanding customers' satisfaction needs. They can retain more customers once they are able to understand
the need of their customers and reduce cost of attracting new customers.
After detailed theoretical discussion about the effect of service quality, price acceptance, trust and customer
satisfaction on behavioral intentions, a quantitative research is conducted to test proposed effects. A survey
approach is used by employing questionnaire in this study and multiple items were used from the previous
studies. IBM Statistical Package (SPSS) version 22 was employed to analyze the data. The result of this study
showed that there is significant positive relationship between the dependent variables and the independent
variables. All constructs were found to have direct impact on customer's behavioral intention. However,
tangibles and empathy, which are the two dimensions of service quality has negative but direct impact.
Keywords: SERVQUAL, Customer Satisfaction, Price Acceptance, Behavioral Intention

INTRODUCTION friends easily as well as the availability of extra services

Coffee took the second most important commodity in
the world after oil nowadays and although it puts many
people in the risk of many diseases in the long run
moreover it also has its health benefits. A study
conducted by Harvard medical School suggested that
coffee keeps cholesterol level in tact as well as it
reduces the risk of Parkinson's disease. However, it also
suggested that coffee imposes some other health issues
when used long term such as high blood pressure
(hypertension) and cancer. Malaysia has traditionally
been more of a tea-drinking nation, but coffee has been
on the rise, as coffee culture grows more popular,
particularly amongst young professionals, coffee shops
are mushrooming up all across the country. Coffee is
called Kopi in Malaysia. It was introduced by the
English military during the period of British
colonization. Kopi culture in Malaysia was first started
with Kopitiam (which means coffee shop in Hokkien
dialect). The coffee isn't just killing the time it is
important for many people and they would like to have
it the best quality possible. The integration of the
current lifestyle makes coffee shops more demanding.
Some customers do go to coffee shops as to chill with
such as wifi, quiet and comfortable places to have
beautiful day (Rahman, 2010).
In today's highly competitive environment, businesses
are consumer oriented where customer satisfaction and
loyalty are key important goals. Service quality, price as
well as trust are all essential elements in achieving such
goals in order to successfully make profit (Wisniewski,
2001). Behavioral intention (BI) is widely studied by
researchers for a long time and it has its importance in
business success or failure. As early as 1950s the
researchers were discussing the loyalty topic as well as
other BI dimensions. Most researchers talked about
behavioral intensions as whole rather than dimensions.
However, loyalty is most widely researched and
defined as the other dimension are part of the loyalty.
The marketing literature indicates that loyalty can be
described in two different ways (Jacoby & Kyner,
1973). The first definition says an attitude, which
creates an attachment and bond to a product or service
or even to an organization. Second definition defines
loyalty as behavioral. This is similar to the service
management view of loyalty, which describes as
constant purchase of service/product from the same

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IJRTBT Behavioral Intentions of Coffee Shop Customers’
provider/supplier as well as the increase in
recommendation and degree of relationship (Yi, 1990).
In their study they explained the attitudinal loyalty as
the customer predisposition about a specific brand as a
part of mental process such as commitment. They
believe that behavioral loyalty as the foreseeable
outcome of attitudinal loyalty. Meanwhile, Becker
(1965) believes that behavioral loyalty (past purchase)
totally accounts loyalty on its own in the same way
similar to Jacob and Chestnett (1978) work. Mckercher
et al., (2011) also state behavioral loyalty as past
experience (purchase) and the attitudinal as future.
However, Dubois & Laurent (1999) argues that it is
stochastic (random process) rather than deterministic.
Lastly, composite loyalty discussed by Zeithaml et al.,
(1996) is all about recommendations and positive
worth of mouth. In general researchers agree that
loyalty is frequent or repeated purchase from the same
company or service providers. The consumers feel
comfortable and attached to the brand even if they can
have the same product elsewhere (Mckercher et al.,
2011). Similarly, a study conducted by Molina and
Velázquez (2011) described loyalty as the willingness
to buy service or product at a higher price based on their
satisfaction level.
Although, studies have shown an increase in coffee
consumption in Kuala Lumpur and in Malaysia as
whole not many compared and contrasted the different
types of coffee shops from customer prospective. Thus,
the aim of this study is to discuss the antecedents of
customers' behavioral intentions towards the coffee
shops as well as to investigate the factors that helped
Starbucks to distinguish their brand from other coffee
shops and the reasons for local coffee are not so popular
compare to non locals such as Starbucks. This research
does not only fill the existing gap but to provide
evidence on how those elements can enhance
repurchase behavioral intention (loyalty), which helps
an organization to gain competitor advantage and a
long term relationship with customer.
LITERATURE REVIEW
Eating or drinking out isn't just about to satisfy a hunger
rather it is to seek pleasure and change of routine life at
home. Once customer eats out he /she expects to have a
service that isn't available at home both physically and
emotionally. The market is highly competitive and
coffee shops needs to be customer oriented to be able to
satisfy their customer (Khalifa, 2015). Modern coffee
shops are available almost everywhere including
shopping mall, convenient stores, etc. and provide
pleasurable moments to chill. This makes more
demanding for better services from those providers
(Foo et al., 2013).
2 | Vol. 1 (4) October 2017 | International Journal on Recent Trends in Business and Tourism
Behavioral Intentions
The inquiry for loyalty has become the strategic plan
for every firm especially service industry, where client
has the choice on the type of service to receive (Peña, et
al., 2013, Mckercher et al., 2011; and Oliver, 1999).
Customer loyalty being defined as continuous
repurchase and increased complement towards specific
brand. Despite any changes in the situation the client
continues to buy from the particular brand or receive
the service (Oliver, 1999). Many authors argued that
organizations with good image usually have
competitive advantage because good image is created
from loyal customers (Fombrun & Riel, 1997; Kreps
and Wilson, 1982; Roberts and Dowling, 2002; Rose
and Thomsen, 2004; Peña, et al., 2013). Another topic
of creating company's image is the increasing interest
of CSR in service industry. This is used as customer
loyal model in many researches. Many studies
suggested that CSR directly effects customer loyalty as
well as it is strong attribute of company's image (He and
Li, 2011; Marin et al., 2009; and Martínez et al., 2013).
According to Heskett et al., (1994) customer loyalty is
the determinant that encourages customers to increase
their purchase in a company as well as the increased
word of mouth. However, Duffy (2003) believes that
loyalty is all about feeling of belongings towards a
certain brands. This repeated purchase and the referral
to friends and families from the loyal customers
ultimately results better financial stability to the
business entities. Studies have found that service
quality, directly effects the organization's image, which
in return effect the customers' satisfactions flowed by
the loyalty Baker et al., 1994, Nguyen & Leblanc 2002,
Lai et al., 2009, and Kim and Ryu, 2012.
Service Quality
Service is described by Gronroos (2004) as ongoing
process of correlation between customers on one side
and service providers on the other. Those include both
physical and financial measures as well as many other
suitable aspects, as it is to provide solution to
customers' problem. High quality service is an essential
element in achieving high portion of market share
known as competitive advantage.Customers'
satisfaction towards a service very much depends on
their assumption about the quality on the service
provided and the trust towards the provider (Ismail et
al., 2006). Many studies have proved that there is
significant relation between service quality and
customer satisfaction as well as customer loyalty (Khan
& Fasih, 2014).
In addition, many studies proved that increased level of
service quality enhance a higher level of customer

satisfaction (Brady & Robertson, 2001; Cronin, Brady,
& Hult, 2000; Dabholkar et al., 2000; Yang, et al.,
2009). Meanwhile, (Zeithaml et al., 1996) mentioned
in his study that the perceived quality is one of the main
indicators of customer satisfaction. Good quality
service attracts new customers as well as it also retains
the existing ones and vice versa (Babakus et al., 2004).
High quality service increases the level of satisfaction,
which in return enhances the loyalty level. Service
quality that passes customer's expectation brings
satisfaction to the consumers. In order to keep long
lasting relationship with customers, service providers
should have to ensure their service exceeds customer's
expectations (Wannenburg et al., 2009). Customers
don't simply buy and use the product they usually
compare the expected quality of the product and the
actual after purchase. When the product quality
exceeds their expectations (perceived quality), it is
usually positive confirmation, which leads to repetitive
purchase (Kárnä, 2004).
According to Kim (2011); Ma et al., (2011) service
performance in restaurants effect their customers'
satisfaction and enhance customer's decision to stay
loyal to a particular restaurant. They suggested that for
continuous survival in the market restaurants should
work harder towards quality service. As there is direct
influence of quality towards satisfaction, restaurants
pay more attention. This means satisfied customers
intend to seek more service in the same restaurants
(loyal). According to study conducted by Soriano
(2002) and Greve (2014) service quality in restaurants
is the second most important determinant for
customers' repurchase intentions and first being food
quality. Meanwhile, service quality increases the
satisfaction level especially in quick service
restaurants, which in return allows customer to decide
to return to the restaurant (Greve, 2014).
In order to measure the service quality, Parasuraman, et
al., (1988) developed a scale that is the most popular
scale used by researchers. SERVQUAL scale consist of
5 different dimensions on service, which are tangibility,
reliability, assurance, empathy and responsiveness.
These dimensions are most related and widely used by
researchers for food industry.
H1. Responsiveness has direct positive influence in
customers' behavioral intension.
H2. Reliability has direct positive influence in
customers' behavioral intension.
H3. Assurance has direct positive influence in
customers' behavioral intension.
H4. Tangibility has direct positive influence in
customers' behavioral intension.
International Journal on Recent Trends in Business and Tourism | Vol. 1 (4) October 2017 | 3
Behavioral Intentions of Coffee Shop Customers’ IJRTBT
H5. Empathy has direct positive influence in customers'
behavioral intension.
Customer Satisfaction
The topic of customer satisfaction has long been the
focus for consumer research e.g., Cardozo (1965),
Churchill and Suprenant (1982); Oliver and DeSarbo
(1988); Tse and Wilton (1988); Westbrook (1981);
Westbrook, & Oliver, (1981). . In today's world
customer satisfaction is one of the key important factors
in generating revenue and overall growth of every
organization regardless of the industry. It is every
organization's target to achieve the highest customer
satisfaction possible. Higher customer satisfaction
leads to increase word of mouth, which in return leads
to favorable market share.
Kärnä (2004) describe the satisfaction as the level of the
product quality or service received and does these
qualities exceed consumer's prediction or not. He
believes that customer satisfaction deals product
quality based on consumer's opinion towards the
product or services. In addition, Yoon (2010) defined
customer satisfaction as the customers' feeling of
rebuying a certain product or company over and over.
Meanwhile, according to (Deng et al., 2010) customer
satisfaction is all about mental state of happiness that
result when the actual product purchased and the
expectations of the customers meets about the product
or service received.
The customer satisfaction plays a big role in future sales
as well as the market share. It is evaluated based on
customer retention, where retaining customers means
satisfying the customers and less spending on new
customer attraction. Not only that it benefits the
individual company's success it also effects the
economy of the country as whole. Once individual
companies are succeeding the productivity of a country
grows with it (Fornell, 1992). The literatures suggested
that customer satisfaction all about after purchase
evaluation. However, Fornell (1992) believes that there
is no consensus on how to measure customer
satisfaction.
In general, high customer satisfaction should indicate
increased loyalty, recommendation and positive word
of mouth for current customers, reduced price
elasticity, insulation of current customers from
competitive efforts, lower costs of future transactions,
reduced failure costs, lower costs of attracting new
customers and an enhanced reputation for the firm.
Increased loyalty of current customers means more
customerswill repurchase (be retained) in the future. If
a firm has strong customer loyalty it should be reflected
in the firm's economic returns because it ensures a
steady stream of future cash flow (Anderson et al.,
IJRTBT Behavioral Intentions of Coffee Shop Customers’
1994).
Meanwhile, Hallowell (1996) suggests that customer
satisfaction leads to customer loyalty, which then result
in profitability. It is proposed that loyal customer means
increased profit. Hallowell (1996) uses both marketing
and service management literatures to support the
argument. The service management literature argues
that customer satisfaction is the result of a customer's
perception of the value received in a transaction or
relationship where value equals perceived service
quality relative to price and customer acquisition costs
(Blanchard and Galloway, 1994; Heskett et al., 1990)
relative to the value expected from transactions or
relationships with competing vendors (Zeithaml et al.,
1990). Many researchers have investigated behavioral
intentions and the link that it has with customer
satisfaction. Satisfaction enhances repurchase
intentions as many studies support this claim. For
instance a study conducted (Wong & Dioko, 2013)
investigate the relationship of the two in casino industry
and supported that customer satisfaction directly
effects repurchase intentions.
H6. Customer satisfaction has direct positive influence
in customer behavioral intension
Trust
According to Bricci, Fragata & Antunes (2016) trust is
the individual believe of others that their action is not
going to harm them. Meanwhile, Kassim and Abdullah
(2010) also described trust as cognitive state of
willingness to accept and believe one's intentions are
harmless based on the expectations of the other. Trust is
also defined by Lee et al., (2012) as the mental state of
an individual to willingly depend on the capability of
the company to produce the intended product or
services.
Most researchers believe that customers' trust towards
an organization is very essential and part of the business
plan in order to build a long-term customer
relationship. Trust increases the likelihood of customer
repurchase intentions as well as spreading positive
word of mouth towards trusted brand (Han and Hyun,
2015). A study conducted to investigate the repetitive
purchase of online products proved that depending on
how well the customer trusts the brand he/she will be
loyal to the brand. The study explained that customer
and the organization offline or online develop deep and
close relationship from repeated transactions, which
ultimately leads to loyalty (Laroche et al., 2012). . Most
researchers explained in their studies that customer
loyalty is based on many different factors, which the
first factor is accepted to be brand trust.
Not only that trust has positive effect on customer
4 | Vol. 1 (4) October 2017 | International Journal on Recent Trends in Business and Tourism
loyalty but it also has significant impact on relationship
commitment as well as satisfaction. Brand trust
happens to have positive impact on customer
satisfaction, which in turn influence customer
commitment. The relationship between all the factors is
interdependent. The existence of one increases the
presence of the other. According to all the dimensions
of service quality enhances the customers' trust in
somewhat different way. For example, the assurance
dimension deals with how well customer can depend on
the provider and trust their products and so on.
H7. Trust has positive effect on Behavioral Intentions
(Loyalty).
Price Acceptance
Price acceptance is the level of individual's
preparedness to pay in exchange of product of services.
Although the decision of buying a product is not solely
on the price, it is one of the vital factor that makes a
customer decide the purchase (Huber, Herrmann, &
Wricke, 2001). Many researchers discussed about the
importance of price and it is even part of the marketing
mix, which has direct relation with the cash inflow of a
business. As discussed in marketing literature price
acceptance has great impact on overall customer
satisfaction and loyalty. To put into simpler words when
customers are satisfied they are ready to willingly pay
more for the product they receive. This is evidence by
those companies with satisfied customers tend to (Ali et
al., 2016) sell their products/service at a higher price to
customers.
In addition, many researches argued that price is one of
the satisfaction element that ensures repeated purchase.
It is also mentions that satisfaction is the key driver of
customer loyalty. Consumers are not just expected high
quality product but long-term relationship the service
provider. To achieve that target satisfaction is the key
determinant for loyalty and ultimately price acceptance
(Virvilaite, Saladiene & Skindaras, 2009). Many
researchers agreed that satisfaction leads to price
acceptance and loyalty. Once a customer is satisfied
he/she values the money that purchased with as it is
worth paying it and willingly pay even more if required
for that satisfied service or or product (Hur, Kim and
Park, 2013). However, a study conducted by Jiang &
Rosenbloom (2005) found that there is a direct positive
effect of price acceptance on return intensions. The
study was based on online shopping where, customers
are unable to see the physical product.Once they
receive the product and find worth the money they paid
for the purchase once again and again leading them to
stay loyal and spread positive word of mouth.
Study conducted on acceptance of mobile phone and
the effect of price value indicated that price value has

direct positive effect on behavioral intension. The study
concluded that customers' interest to use the technology
increases depending on the price value, where higher
price value results higher interest in the use of the
technology (Ostrom et al., 2015). Wen-Tai Lai, Ching-
Fu Chen (2011) confirms the effect of perceived value
of service and or products is direct and positive towards
customers' behavioral intensions. Studies have
suggested that customers with the capabilities of
paying expensive price (accepted price) are more likely
to rebuy products/services from the same organization.
This is a strong contributor of company's cash flow
(Bendixen, Bukasa, & Abratt, 2004; Kumar, Bohling &
Ladda, 2003).
H8. Price Acceptance has direct positive effect on
customers' repurchase intension.
THEORETICAL FRAMEWORK
High quality service/product quality is equivalent to
satisfied customers home (Foroughi & Chegini, 2016).
Meanwhile, Riquire & Rungie (1997) and Kassim &
Abdullah (2008) argued that service quality predicts the
satisfaction level. To put into words, the higher the
quality the more the satisfaction. A service that has
qualities exceeding customers' expectations wins
customers' heart making them loyal to the vendors
(Wannenburg et al., 2009). In addition, Hallowell
(1996) argues that both service management and
marketing literatures support that there is strong
connection between customer satisfaction and customer
loyalty as well as service quality. This means to say that
satisfied customers tend to stay and expect more
satisfaction from the providers. This leads to retention
of the customers and increased profitability.
Although some researchers argued that having loyal
customers doesn't necessarily mean increased profit
margin, acquiring new customers is costly. It requires
many spending in marketing as well as other
promotional programs (Ghayoomi & Nazari, 2014).
Keeping customers satisfied is also costly, where many
Conceptual Model Showing Relationships Between Study Variables
Reliability
Responsiveness
Service Quality
Assurance Dimensions
Tangible H1- H5
Empathy Customer
Satisfaction
Trust
Price Acceptance
International Journal on Recent Trends in Business and Tourism | Vol. 1 (4) October 2017 | 5
Behavioral Intentions of Coffee Shop Customers’ IJRTBT
companies spend a lot in quality control measures
including CRS for the customers, but cheaper than
acquiring new customers (Anderson et al., 1994).
Many researchers have investigated the relationship
between service quality price and customer satisfaction
with behavioral intension and different models have
been used to fully understand the exact relationship.
Although, most of the studies have found interrelated
relationship where service quality has positive effect on
the behavioral intension only through satisfaction (eg.
Anderson and Sullivan, 1993; Gotlieb, Grewal, and
Brown, 1994; Patterson and Spreng, 1997). Others
suggest that there is direct effect e.g. Lai and Chen,
(2011);Parasuraman, Zeithaml, and Berry, (1988),
(1991); Boulding et al., (1993); Taylor and Baker,
(1994); Zeithaml, Berry, and Parasuraman, (1996).
Meanwhile, study conducted by Cronin, J.(2000)
concluded that there is a direct positive effect of price,
service quality as well as satisfaction on customers'
behavioral intension. The study examined the effect of
those variables on behavioral intension in service
environment. They believe that previous studies that
found indirect relationship were having limited scope
of study that didn't allow to further investigation.
On the other hand, researchers also found positive
relationship between customers' trust and behavioral
intension, where when one trusts a firm he/she is likely
to stay loyal to the particular firm e.g. Keh & Yi Xie
(2009); Lai and Chen, (2011). In addition, importance
of trust in businesses is undeniable and plays an
essential role in firm's financial gains as well as the
future relationship with customers (Christopher W.
Hart,1999).Trust is believed to be an essential
contributor of customers' loyalty towards an
organization e.g., Garbarino and Johnson, (1999);
Chaudhuri and Holbrook, (2001). Not only does it
make customers loyal, trust also gives customers the
tendency to accept higher price when the firm is
trustworthy (Chaudhuri and Holbrook, 2001; Pan et al.,
2012).
H6
Behavioral
H7 Intensions
H8
IJRTBT Behavioral Intentions of Coffee Shop Customers’
METHODOLOGY
Questionnaire Form and Sample Size
The questionnaires were based on SERVQUAL model
for the serve quality. There were 6 parts of the
questionnaires. The first part of the questionnaires
were demographical (age, gender etc) data and the
second part were the main variables of the study.
Questionnaires were distributed and collected by
researcher for two-month periods using convenient
sampling method. Questionnaires were designed
easily for all people to understand and answer the
questions correctly without any difference. All
questions were close ended with the use of a five point
Likert-scale consisted of strongly disagree to strongly
agree. In which, 1 is Strongly Disagree, 2 is Disagree, 3
is Neutral, 4 is Agree, and 5 is Strongly Agree. Four
hundred questionnaires were sent out for data
collection from coffee shops in Kuala Lumpur, which
conveniently selected. Questionnaires were
conveniently distributed among customers.
Table 1: Antecedents of Behavioral Intensions
Responsiveness
The employees were never too busy to
respondcustomer's requests.
The employee were consistently courteous
with customers
The employees gave prompt service to the
customers
The employees were always willing to help
customers
When customers had problems, the employees
showed a sincere interest in solving it
Empathy
Employees show no discrimination among
customers.
Employees understand customer's needs.
Staff cares for me
Reliability
The employees provided services at the time
they promised to do so
When employees promised to do something
by a certain time, they did so
The employees performed the service right
the first time
The employees insisted on error-free records
Assurance
The behavior of the employees instilled
confidence in customers
The employees had the knowledge to answer
customers' questions
Customers felt safe in transaction
The employees told customers exactly when
services would be performed
Tangibles
The restaurant had attractive interior design
and décor
The dining areas are thoroughly clean
Employees are neat and well dressed
Customer Satisfaction
I am very satisfied with my over all experience
at this coffee shop
I have really enjoyed myself at the coffee shop
Overall, this coffee shop puts me in a good mood
Price Acceptance
I know the references price level
Sometimes I am willing to pay more
I usually accept changes in price
I have a good knowledge of price distribution
in resort
6 | Vol. 1 (4) October 2017 | International Journal on Recent Trends in Business and Tourism
Zhang, Cole, Fan and Cho, 2014
Zhang, Cole, Fan and Cho, 2014
Zhang, Cole, Fan and Cho, 2014
Zhang, Cole, Fan and Cho, 2014
Zhang, Cole, Fan and Cho, 2014
Xuan, 2013
Xuan, 2013
Greve, 2014
Zhang, Cole, Fan and Cho, 2014
Zhang, Cole, Fan and Cho, 2014
Zhang, Cole, Fan and Cho, 2014
Zhang, Cole, Fan and Cho, 2014
Zhang, Cole, Fan and Cho, 2014
Zhang, Cole, Fan and Cho, 2014
Zhang, Cole, Fan and Cho, 2014
Zhang, Cole, Fan and Cho, 2014
Ryu, Lee and Kim, 2010
Ryu, Lee and Kim, 2010
Ryu, Lee and Kim, 2010
Ryu, Lee and Kim, 2010
Ryu, Lee and Kim, 2010
Ryu, Lee and Kim, 2010
Ali, Amin and Cobanoglu, 2015
Ali, Amin and Cobanoglu, 2015
Ali, Amin and Cobanoglu, 2015
Ali, Amin and Cobanoglu, 2015
Trust
I trust this coffee brand Lee, Moon, Kim, Mun, 2014
I trust the product of this coffee shop Lee, Moon, Kim, Mun, 2014
This product of this coffee shop is not contrary Lee, Moon, Kim, Mun, 2014
to my expectations
Behavioral Intensions
I would like to come back to this coffee shop Ryu, Lee and Kim, 2010
in the future
I would consider revisiting this coffee shop in Ryu, Lee and Kim, 2010
the future
I would recommend this coffee shop to my Ryu, Lee and Kim, 2010
friends
I would say positive things about this coffee
shop to others
Ryu, Lee and Kim, 2010
I would encourage others to visit this coffee Ryu, Lee and Kim, 2010
shop
Validity and Reliability
The questionnaires were constructed in order to collect
data from customers' coffee shops. To insure that the
questionnaires are valid, pilot study was performed
using 50 questionnaires. The language used for the
questionnaires was considered easy and customers were
able to understand as seen in the comments of the
respondents in the pilot study. To investigate the content
validity, corrected item–total correlation statistics were
used to determine the retained variables. All items
within each construct were found valid scoring a loading
greater than 0.5 and retained in the final version of the
questionnaire. The constructs' reliability was also
performed using Cronbach's alpha coefficient and each
item scored above 0.70, which means the questionnaire
results are reliable (Hair et al., 2010).
Analysis Technique
In order to investigate the causal relationships between
independent factors of customers' coffee shop
experience and their behavioral intension general linear
regression analysis was employed. The measurement
model measures the relationships between the
constructs and their indicators. Frequencies, and means
were calculated for all variables. Meanwhile, to measure
other variances such as age gender etc an Independent
sample t-test and ANOVA were employed SPSS
(version 22) software was also used to analyze the data
while keeping in mind the reliability check, which
should be greater than 0.7 in Cronbach's alpha, statistics.
RESEARCH FINDINGS
Descriptive Statistics
The descriptive statistics showed that 51% of the
respondents are male while 49% of them are female.
However, majority of the respondents are middle-aged
group between 30 to 40 years of age, which consist 55%
followed by 20.8% of 41 to 50 years of age. Meanwhile,
above 50 years old and below 30 years are nearly same
comprising 11.5% and 11.8 respectively. Nearly half of
the respondents are Chinese 48.5 % followed by 25.3 %
of Indians and 20.8% of Malays and only 5.5% of the
 Behavioral Intentions of Coffee Shop Customers’ IJRTBT

respondent are Foreigners. About 36.5% of respondents Assurance Ass 1 0.237 0.542 1.846 0.723
visit 1-5 times a month, while, 27.3% visit 6 to 10 times Ass 2 0.437 0.385 2.596
a month. Meanwhile, about 22% of them visit 11-15
Ass 3 0.322 0.394 2.541
times a month and 14% do visit visit 16 times or more in
a month. More than half of the respondents prefer Ass 4 0.417 0.376 2.661
Starbucks over other coffee shop, which is 53.3%. Tangible Tan 1 0.396 0.420 2.380 0.807
About 23% of them prefer coffee beans whereas, 18.5% Tan 2 0.367 0.464 2.153
likes Old-Town White Coffee and only 5.3% favor other Tan 3 0.496 317 2.153
coffee shops (Table 2).
Tan 4 0.468 0.356 2.807
Table 2: Descriptive Statistics of the Respondents
Empathy Emp 1 0.396 0.432 2.314 0.823
Emp 1 0.367 0.301 3.317
Emp 1 0.496 0.420 2.382

Customer CS1 0.089 0.429 2.330 0.712

Satisfaction CS1 0.285 0.390 2.564
CS1 0.182 0.497 2.010
Price PA 1 0.168 0.355 2.819 0.713
Acceptance PA 2 0.039 0.436 2.292
PA 3 0.349 0.352 2.842
PA 4 0.223 0.354 2.825
Trust T1 0.315 0.456 2.195 0.705

T2 0.466 0.313 2.199

T3 0.333 0.287 3.438
Behavioral BI 1 0.257 0.410 2.438 0.891
Intension BI 1 0.344 0.310 3.226
BI 1 0.350 0.251 3.981
The Regression Model BI 1 0.281 0.235 3.891
BI 1 0.242 0.289 3.455
To test the regression model, Table 3 outlines the Note: VIF: Variance Inflation Factor
construct Corrected Item-Total Correlation, Tolerance,
Variance Inflation Factor (VIF), and Cronbach's alpha. Hypothesis Testing
Looking at Corrected Item-Total Correlation statistics, The Regression Model Finding
the revealed values of all constructs are between, 0.30
and 0.80 which are evident of convergent validity. In The Regression model is used to measure the causal
total and from Table 3, considering Cronbach's alpha, relationships among the constructs. It is found that the
all values of Cronbach's alpha are greater than 0.70. For model components (Independent variables) have a
normality, Skewness values for all items are less than significant effect on customers' behavioral intension
(1), Variance Inflation Factor (VIF) values are less than (F= 26.302 & P-value) (see Table 4). In the finding of
10, and the findings of the measurement model are this research, it supported all 8 hypothesis measured as
reliable. well as it showed a positive effect of most factors
studied in the research on customers' behavioral
Table 3: Measurement Model intension (repurchase). However, there are different
Dependent Corrected
Item Total Tolerance VIF Total Cronbach’s effects of the independent factors, where some have
Constructs alpha
Correlation positive effect on the dependent variable while, others
Responsiveness Resp1 0.267 0.505 1.982 0.706 have negative effect on the customers' behavioral
Resp2 0.208 0.572 1.747 intension. The interpretation of positive and negative
Resp3 0.318 0.580 1.723
effect reflects how customers perceive coffee shop
services offered and coffee experience (Figure 1).
Resp4 0.242 0.562 1.778

Resp5 0.300 0.483 1.070 Table 4: Significance of Regression Model

Model Sum of Squares Df Mean Square F Sig.
Reliability Rel1 0.129 0.557 1.796 0.721
1 Regression 43.238 8 5.405 26.302 0.000b
Rel2 0.186 0.561 1.782 Residual 80.345 391 0.205
Total 123.582 399
Rel3 0.219 0.582 1.719
a. Dependent Variable: Behavioral intension
Rel4 0.226 0.485 2.061 b. Predictors: (Constant), Trust, Tangible, Reliability, Empathy, Responsiveness,
Assurance, Customer satisfaction, Price Acceptance

International Journal on Recent Trends in Business and Tourism | Vol. 1 (4) October 2017 | 7
IJRTBT Behavioral Intentions of Coffee Shop Customers’

The eight constructs used to examine customers' Meanwhile, the regression result of the relationship
perception about their experience in the coffee shops. between the customer satisfaction and behavioral
Six out of these eight constructs customers perceived to intension showed positive effect towards the behavioral
be positively affecting their coffee shop experience. In intension (β=0.156 and p<0.01). This finding
other words, customers are happy with their preferred confirmed the result of the previous studies (Molina,
coffee shop. The responsiveness content is positively Martín-Consuegra, & Esteban, 2007, and Deng et al.,– ,
affecting customers' coffee shop experience as and Ryu et al., 2012). They found in their studies direct
(β=0.139 and p<0.01). This content reflects the positive relationship between customer satisfaction and
employees' response to their customers' needs is up to behavioral intension (loyalty), which indicates satisfied
the expected level. Meanwhile, reliability content is customers are willing to repurchase from the same
also affecting the customers' behavioral intension as company over and over.
well as the assurance part. To put into words the
customers feel safe and they can rely the coffee shops Table 5: Hypothesis Testing Result
they usually like to go, as they also feel assured.
However, the other two dimensions of service quality,
which are tangible and empathy are negatively
affecting the customers' behavioral intension towards
respected coffee shops. This finding is similar with
Xuan (2013) in his study about the investigation into
customer satisfaction and customer loyalty on coffee
products and services a case of porevol coffee shop in
hcmc. However, the two negatively affecting
dimensions are not similar with the study as he found in
his study all service quality dimensions are positively
affecting customers' loyalty.
On the other hand Price Acceptance and Trust were also
found to be positively affecting customers' behavioral
intension towards coffee shop of their choice. The
regression analysis test showed β=0.143 and p<0.05 DISCUSSION
and β=0.286 and p<0.05 both variables respectively, This study aimed to identify the relationship between
which indicates the importance of those constructs to
service quality, trust, price acceptance and customer
the customers. This finding of the effect of trust is
satisfaction with customers' behavioral intension in
consistent with Deng et al.,– in their study about
Understanding customer satisfaction and loyalty: An coffee shop industry in Kuala Lumpur. The effect of the
empirical study of mobile instant messages in China. independent factors towards the dependent factor was
However, this study contradicts previous study of also investigated. The result showed significant positive
(Molina, Martín-Consuegra, & Esteban, 2007), which relationship between the constructs. Almost all the
they observed a positive effect of behavioral intensions independent variables have positive influence on
on price acceptance. The finding of the effect of price customers' revisit intensions. This confirms previous
acceptance is similar with Jiang and Rosenbloom studies Deng et al., (2010), Molina, Martín-Consuegra
(2005) which, found direct positive effect of price & Esteban (2007) and Cao (2013). They all found in
acceptance on return intension. their studies positive and direct influence of all
constructs (Service quality dimensions, trust, price
Responsiveness β=0.139 acceptance and customer satisfaction) on customer's
P<0.01
β=0.177 revisit intension (behavioral intension). However, the
Reliability
P<0.05
β=0.123
finding of this study contradicts in two of the service
Assurance P<0.01 dimension, which is tangible and empathy. Unlike other
β=-0.143 R2=0.41 studies the result of this study showed negative impact
Tangible P<0.01
β=-0.195
Behavioral on the behavioral intension.
Empathy P<0.01 intentions
β=0.143 Customers expressed their opinion in the study in a
Price Acceptance P<0.05
β=0.286 form of questionnaires, where they select the most
Trust
P<0.05 suited answer from 5point Likert-Scale answers to their
β=0.156 experience in the coffee shop. Among 5 service
C2C Interaction P<0.01
dimensions studied in this research, customers found

8 | Vol. 1 (4) October 2017 | International Journal on Recent Trends in Business and Tourism

tangibles and empathy lack to meet their expectations.
This indicates the need for improvement for both
dimensions in the coffee industry. Tangibles are the key
to great environment for the customers to relax and
enjoy their time, such as the cleanliness of the coffee
shop, as well as the décor as well as the staff to name a
few. Meanwhile, staff empathy has its own importance
as it makes customers feel respected and well taken care
of. When the staff shows friendly face, excellent
services and empathetic attitude towards customers, it
increases the chance of customers being satisfied with
the services they got thus, revisit intension has greater
potential (Chang and Zhu, 2012).
The role of price has been examined by many
researchers where some found that there is no effect of
price on satisfaction while others such as Voss et al.,
(1998) found that price perception has effect on
customer satisfaction on microeconomic study in 7
different sectors. However a study conducted by Jiang
and Rosenbloom (2014) found that price perception has
direct positive effect on customers' return intension in
online shopping. According to their explanation as
online shoppers are unable to see physical product they
usually decide if the product is worth its money. Once
the price is reasonable they tend to be loyal to the
particular website and willingly pay more to get the
same quality product. This finding is similar to the
result of this study, which found direct positive impact
of price acceptance on customers' behavioral
intensions.
CONCLUSION
This research examined the antecedents of customers'
behavioral intension towards coffee shops in Kuala
Lumpur. In order to better investigate and have clear
evaluation of the constructs, I have used the
SERVQUAL model that is being created by
Parasuraman et al., 1988 as a theoretical guide for setting
the scale and designing the questionnaire. The main
construct questionnaires are designed based on 9
dimensions 5 being SERVQUAL model named
Responsiveness, Reliability, Assurance, Tangibles and
Empathy. The other 4 dimensions covered customer
satisfaction, trust, price acceptance and behavioral
intension, which then distributed to the customers. The
research started on November 2016 and last till July
2017.
About 8 hypotheses were tested in the study about the
effect of those factors (service quality dimensions,
trust, price acceptance, and customer satisfaction) on
customers' behavioral intension (loyalty). All
hypotheses were found to have direct impact on
customer's behavioral intension. However, tangibles
International Journal on Recent Trends in Business and Tourism | Vol. 1 (4) October 2017 | 9
Behavioral Intentions of Coffee Shop Customers’ IJRTBT
and empathy, which are two dimensions of service
quality has negative but direct impact. A survey
questionnaire was used in the study to collect the data
from 400 coffee shops' customer in Kuala Lumpur
about their behavioral intensions towards the coffee
shops. A software called SPSS version 22 is used for the
data analysis section and systematic step by step
analysis technique is followed in the process. At the
first step descriptive statistics are discussed followed
by reliability and validity test for the questionnaires.
Lastly, regression model was used to analyze the causal
effect of the independent variables has on the dependent
variable (behavioral intension).
RECOMMENDATIONAND LIMITATIONS
This research is one of the few studies that examined
the customers' coffee experience in Kuala Lumpur,
which brings to light the customers' viewpoint of coffee
shops as well as their decisive factors that they found or
lack in their preferred coffee shop. In addition, the study
has brought a useful feedback to the coffee shop
operators and stuff from their customer if necessary
about any as well as the strong point to keep up to. The
result showed a positive impact of all independent
variables (Responsiveness, Reliability, Assurance,
Tangibles and Empathy Customer Satisfaction, Trust,
Price Acceptance) on the dependent variable
behavioral intension except the Tangibles and Empathy
dimension.
Positive impact indicates that customers are happy with
the service which requires the coffee operators to
maintain and strive to achieve more on those who
positively affect the customer's behavioral intensions.
Customers find employees are very attentive and
respond to their needs quickly as well as they find them
trustworthy. In addition, customers also find the overall
service as satisfying experience. The coffee shop
operators have to focus on the 6 items (Responsiveness,
Reliability, Assurance, Customer Satisfaction, Trust,
Price Acceptance) that positively affect the customers'
experience in order to retain the customers longer and
win more market shares. Those positive factors indicate
that customers are happy with the services they get and
it should further develop into more favorable ways for
the customers.
Meanwhile, the negative parts are to be addressed and
well taken care of as well as it indicated that the
customers dislike those parts. The physical part of the
service that can be touched and seen such as the
lightening, seating arrangement and air condition
facilities, the workers in the organization are also part
of the tangibles that are used for the measurement
IJRTBT Behavioral Intentions of Coffee Shop Customers’
(Blery et al., 2009). Although, the average mean score
of the construct is within the acceptable range the
regression analysis showed negative impact, which
indicates weakness in the dimension. The negative part
in the tangible is more on the physical part such as the
environment. This concludes that there are some
necessary improvements to work on for coffee
operators to gain competitive advantage.
In addition to tangibles, empathy was another
dimension of service quality that affects the customer's
behavioral intension negatively. This represents
employees' care towards customers and showing
positive attitude as well as how well they listen to the
customers. It also focuses on how well the responsible
personnel tackles customers' concerns and the ability to
show flexibility (Chin & Tsai, 2013). Although the
mean value of this construct indicates favorable
number the negative impact in the regression result
indicates defect in the construct. The managers and
coffee operators as well as the staff should focus on the
improvement of those two factors as one involve in
employees' attitude towards which measures the
empathy of the workers towards their customers.
IMPLICATION
One thing to be acknowledged is that study does have
some limitations. One of which, the research is solely
based in Kuala Lumpur area where most coffee shops
are based and generalization to the entire country might
not be possible. The study also faces limitations as it
uses convenient sampling without matching
respondents' profile completely.
In recent years, the need for coffee is on the rise and the
demand is on its highest. However, the study did not
cover all other important remaining areas, such study
may be necessary to explore the areas that were not
covered in this research. On the other hand, the
limitation and scope of the study could be the evidence
for implication of further research. In addition, due to
the limitation of time and capital this research focuses
only the capital city Kuala Lumpur and uses convenient
sampling. The study lacks the generalization of the
study to the entire country. Therefore, future
researchers should use different sampling approach
with different customers and areas. Meanwhile, the
study indicated negative influence of two service
quality dimensions thus further qualitative research is
necessary to know in depth the real cause of the
negative influence. Finally, future researchers should
use other models and methodologies for comparing the
result with this research.
10 | Vol. 1 (4) October 2017 | International Journal on Recent Trends in Business and Tourism
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